Correlation Between CSSC Offshore and Astral Foods
Can any of the company-specific risk be diversified away by investing in both CSSC Offshore and Astral Foods at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining CSSC Offshore and Astral Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CSSC Offshore Marine and Astral Foods Limited, you can compare the effects of market volatilities on CSSC Offshore and Astral Foods and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in CSSC Offshore with a short position of Astral Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSSC Offshore and Astral Foods.
Diversification Opportunities for CSSC Offshore and Astral Foods
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between CSSC and Astral is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding CSSC Offshore Marine and Astral Foods Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astral Foods Limited and CSSC Offshore is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on CSSC Offshore Marine are associated (or correlated) with Astral Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astral Foods Limited has no effect on the direction of CSSC Offshore i.e., CSSC Offshore and Astral Foods go up and down completely randomly.
Pair Corralation between CSSC Offshore and Astral Foods
Assuming the 90 days trading horizon CSSC Offshore is expected to generate 2.52 times less return on investment than Astral Foods. But when comparing it to its historical volatility, CSSC Offshore Marine is 3.22 times less risky than Astral Foods. It trades about 0.04 of its potential returns per unit of risk. Astral Foods Limited is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 905.00 in Astral Foods Limited on August 25, 2024 and sell it today you would earn a total of 0.00 from holding Astral Foods Limited or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CSSC Offshore Marine vs. Astral Foods Limited
Performance |
| Timeline |
| CSSC Offshore Marine |
| Astral Foods Limited |
CSSC Offshore and Astral Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSSC Offshore and Astral Foods
The main advantage of trading using opposite CSSC Offshore and Astral Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSSC Offshore position performs unexpectedly, Astral Foods can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Astral Foods will offset losses from the drop in Astral Foods' long position.| CSSC Offshore vs. Apple Inc | CSSC Offshore vs. Apple Inc | CSSC Offshore vs. Apple Inc | CSSC Offshore vs. Apple Inc |
| Astral Foods vs. Charoen Pokphand Foods | Astral Foods vs. Superior Plus Corp | Astral Foods vs. NMI Holdings | Astral Foods vs. Origin Agritech |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |